December report from CapitalHeight

Date 4.12.17
These low beta stocks will perform in falling market
Britannia Industries Limited is a major player in the Indian Foods market with
leadership position in Bakery category. Its brand portfolio includes Tiger, Marie Gold, Good
Day, 50:50 and Treat. The Company was born in 21st March of the year 1918 as a public
limited company. The Companys plants are situated in Kolkata, Delhi, Chennai, Mumbai and
Uttarakhand. In 1921, it became the first company east of the Suez Canal to use imported gas
ovens. Britannias business was flourishing. But, more importantly, Britannia was acquiring a
reputation for quality and value. As a result, during the tragic World War II, the Government
reposed its trust in Britannia by contracting it to supply large quantities of service biscuits to
the armed forces.
 The The company was rated as the No 1 Most Trusted Food Brand in a survey
conducted by AC Nielsen ORGO-MARG and published in Economic Times in the year
2007.
 BIL was ranked 27th place in the list of Indias Fastest Growing Large Companies by
Business Today, Special on June of the year 2008.
 Britannia launched Iron fortified Tiger Banana biscuits, Good Day Classic Cookies, Low
Fat Dahi and renovated MarieGold during the period of 2008.
 Forbes Global Ranking was rated the company during the year 2000, Britannia among
Top 300 small companies. In the same year, the company had launched Britannia
Milkman Butter, a product under the Milkman brand.

Fundamental Analysis
Britannia Industries is a major player in the Indian Foods market with leadership position in
Bakery category. It offers bakery products such as biscuit bread cake and rusk as well as dairy
products including milk butter cheese ghee dahimilkbased ready to drink beverages and dairy
whiteners. Britannia Industries Limited also manufactures and sells gourmet bakery solutions
comprising specialty breads cakes pastries and cookies. It primarily offers its solutions under
the Good Day Tiger NutriChoice Milk Bikis 5050 and Marie Gold brands. Britannia Industries
Limited was founded in 1892 and is based in Bengaluru India.Beta of the stock for one month
range is 0.26.
 Company is virtually debt free.
 Company has good consistent profit growth of 38.15% over 5 years
 Company has a good return on equity (ROE) track record: 3 Years ROE 42.74%
 Company has been maintaining a healthy dividend payout of 31.21%
 Company has P/E ratio of 63.49 Which is less than industry P/E of 64.75
Fundamentals
Market cap 57688.42 Cr.
Face value Rs. 2
Book value Rs. 224.81
EPS 75.65
52 Week H/L Rs. 2776/4926
Listed at NSE/BSE
P/E Ratio 63.49
Industry P/E 64.75

Technical Analysis
Britannia Industries is currently in a strong bullish trend on technical charts. The stock
gained nearly 70 percent in 2017 from the lows of 2830 to high 4926. The stock rallied in the
same way when it started in June 2014 continued unstoppable uptrend continuously till 14
months. And currently it is again in the continuous 11th month of uptrend and there are many
more to come backed with strong fundamentals of the company. It is currently trading in a
channel line formation on weekly chart started from May 2017.
 The stock has Channel line support on weekly and Daily chart
 It extends uptrend with the support of 9 day EMA which plays a role of strong support
 ADX also signals strength in an uptrend and currently above 57
 In the last week it has given volume break out of the last 5 year
 The stock consolidates in a tight range on daily chart and above 4885 it may blast to
new highs
 The channel line resistance would be around 5150 to 5200 and expected to touch in
the next couple of weeks
Buy Britannia December futures between 4740-4800 for the target of 5050-5200 with stop
loss below 4590, hold till expiry for huge returns
Supports and Resistance (Monthly)
Resistance 1- 4885 Support 1- 4690
Britannia Weekly CHART

DFM Foods Ltd. is an India-based company. The company is engaged in the
manufacturing and marketing of processed foods, which includes snack foods. The Company
operates in one business segment, which includes FOODS. The company was incorporated in
the year 1993. This business pioneered the entry of packaged snacks in the Indian market
with the introduction of its Crax Corn Rings product. Today with sales spanning all of North
and parts of Central India, our Crax and Natkhat brands are amongst the most popular in the
Industry.
 The companys products are sold through an extensive Distribution network spanning
the states of Delhi, Uttar Pradesh, Punjab, Haryana, Uttararnchal, Himachal, Jammu &
Kashmir, Rajasthan and Madhya Pradesh. The markets are covered and serviced by
committed Sales Team.
 The Companys processing facility is located at Ghaziabad in the state of Uttar Pradesh
in close proximity to the Companys Corporate office in Delhi. The facility makes use of
state of the art manufacturing equipment from across the globe to ensure consistency
and quality of all its products.
 Corn Rings and Wheat Puffs are marketed under the CRAX and NATKHAT brand names
respectively. Both these have become extremely popular snacks, especially among
children.
 In the namkeens segment, the company offers a complete range of products
consisting of 13 distinct product variants that include Bhujiyas, Daals, Mixtures and
Nut-Mixes These are sold in several pack sizes to cater to both casual / impulse
consumption as well as consumption at home.

DFM Foods Ltd. is engaged in the business of manufacturing, selling and marketing of
packaged snack foods and has been a leader in the space for over 25 years. This business
pioneered the entry of packaged snacks in the Indian market with the introduction of its Crax
Corn Rings product. Beta of the stock for one month range is 0.080 .
Product range:
Corn Rings and Wheat Puffs are marketed under the CRAX and NATKHAT brand names
respectively. Both these have become extremely popular snacks, especially among children.In
the namkeens segment, company offers a complete range of products consisting of 13
distinct product variants that include Bhujiyas, Daals, Mixtures and Nut-Mixes. These are sold
in several pack sizes to cater to both casual / impulse consumption as well as consumption at
home.
 The Company has a good return on equity (ROE) track record: 3 Years ROE 31.43%
 Net profit of the company has doubled in this quarter and sales also have increased
 PBDIT also jumped from 7.91 to 13.74 in the quarter
 Bought buy 5 mutual fund schemes
 Net sales of the company has increased from 2.63 cr to 6.55 cr in the last quarter
Fundamentals
Market cap 2055.34 cr.
Face value Rs.10
EPS Rs. 17.88
52 Week H/L Rs.1122/2141
Listed at NSE/BSE
P/E Ratio 114.93
Industry P/E 65.4

Technical Analysis
DFM Foods rallied near 65 percent in the last one year, It gave strong signal to buy on Daily
and weekly charts. In the last week of November the stock again managed to break above
psychological level of 2000 and sustained above this level, also managed to give weekly
closing above 2000. It gave break out of the consolidation range of last 18 days, heading
towards its all-time high levels near 2150. The only concern in break out is low volume but
expected to increase when break above 2100.
 The stock formed a pennant pattern on daily chart with ascending triangle in it.
 If we draw an Internal trend line from the highs of June and August 2017, then it
clearly supports the Pennant Pattern
 If we calculate the target range of Pennant pattern, it is around 2450-2460
 Higher Volume with break out will confirms the continuation of uptrend in the first
week of December
 1800 is the Key support and stock should not give weekly closing below this level if it
has to go in an uptrend
Buy DFM Foods between 2000 and 2050 is recommended for the target of 2400 to 2600 and
maintain stop loss below 1800
DFM Foods DAILY CHART

Biocon Limited, a fully integrated healthcare company was incorporated in the year
1978 as a joint venture between BioconBiochemicals Limited of Ireland and an Indian
entrepreneur, Kiran Mazumdar-Shaw. The Companys business model spans the entire drug
value chain, from pre-clinical discovery to clinical development and through to
commercialisation and focused on biopharmaceuticals, custom research and clinical research.
Biocon is an ISO 9001, ISO 14001:2004, ISO 9001:2000, ISO 15189:2003 and also OHSAS
18001:1999 certified for various levels. Biocon have two subsidiary companies for support,
namely Syngene International Ltd and Clinigene International Ltd. Biocon has rapidly
developed a robust drug pipeline, led by monoclonal antibodies and several other molecules
at exciting stages in the biopharmaceutical value chain.OncologyBiocon manufactured and
exported enzymes to USA and Europe during the year 1979, as first of its kind. In 1989,
Unilever plc acquired the BioconBiochemicals Limited in Ireland and merges it with its
subsidiary, Quest International
 The commercial success of Biocons proprietary fermentation plant leads to a 3-fold
expansion during the year 1996 and also in the same year, the company had leveraged
its technology platform to enter biopharmaceuticals and statins. Biocon had
spearheads initiatives in human healthcare in the year 1997 through a dedicated
manufacturing facility.
 As at January 2008, Biocon Limited and IATRICa, Inc made a strategic partnership to
co-develop an exclusive new class of immunoconjugates for targeted immunotherapy
of cancers and infectious diseases.
 Abu Dhabi based pharmaceutical company Neopharma had signed an MOU with the
company to establish a JV to manufacture and market a range of biopharmaceuticals
for the GCC countries (Gulf Cooperation Council) in the year 2007.

Biocon Limited (“Biocon” or the “Company”) was set up in the year 1978 as a joint venture
between BioconBiochemicals Limited of Ireland and an Indian entrepreneur, Kiran
Mazumdar-Shaw. Biocon is a fully integrated biopharmaceutical company focused on
biopharmaceuticals, customized research and clinical research. The Company has developed a
robust drug pipeline and offers active pharmaceutical ingredients (APIs), including
cardiovascular agents, anti-obesity agents, oral anti-diabetic agents, anti-inflammatory
agents and digestive-aid enzymes.The Company also has commercial and marketing
agreements with Pfizer and Ferozsons Laboratories Limited, and licensing agreement with
AbraxisBioScience, Inc, as well as strategic collaboration for insulin products with Mylan,
Inc.The Company’s brands include Herceptin, Enbrel, MabThera, Remicade, Lantus, Humalog
and NovoLog. Beta of the stock for one month range is 0.028.
 Average 2 year ROE of Biocon Ltd. 16%
 Bought by 34 mutual fund schemes and sold by only 26 mutual fund schemes in last
quarter.
 The Company has maintained an average dividend yield of 0.82 % over the last 5
financial years.
 Net sales of the company has increased from 574.30 crore to 604.70 crore and net
profit has increased from 54.50 to 68.40 crore in last quarter
 Biocon’s average interest coverage ratio over the last 5 financial years has been
122.48 times which indicates that the Company has been generating enough for the
shareholders after servicing its debt obligations.
Fundamentals
Market cap 26793 cr
Face value Rs. 5
EPS Rs. 7.48
52 Week H/L Rs. 279/449.20
Listed at NSE/BSE
P/E Ratio 59.70
Industry P/E 28.76

Technical Analysis
Biocon is again on its all-time high levels after split some times before. In the end of 2016 the
stock started its major uptrend and gained more than 150 percent in just around 1 year of
time period backed by strong fundamentals. Despite of negative trend in the Index in the last
week of November the stock managed to close at its highest levels. Earlier the stock swing
between 50 points from the last 8 to 10 weeks and now going for new highs.
 On weekly chart the stock is trading in a broadening triangle pattern
 Broadly the pattern has completed 45 weeks and heading towards its upward trend
line
 If we draw a trend line from the highs of November 2016 and July 2017, the extension
will given the upper range of the stock
 55 day EMA clearly supports the trend line and the stock respects its earlier also on
weekly chart
 ADX also gave cross over on the previous week strong closing
Buy Biocon December futures between 440 and 450 for the target of 490 to 500 and maintain
stop loss below 415.
Biocon WEEKLY CHART

Majescois a provider of core insurance technology software and IT services to insurance
carriers worldwide. Majesco delivers software and IT services in core insurance areas
including policy administration, product modeling, new business processing, billing, claims,
producer lifecycle management and distribution.Majescoprvides technology solutions,
products and services for the insurance industry across lines of business – Property &
Casualty (General Insurance), Life, Annuity, Health, Pensions, and Group & Worksite
Benefits insurance. The company focus on delivering business value and enhanced business
capabilities to clients through a combination of world-class enterprise grade products in
modern technologies, implementation services and specialized application services.
 The Majesco Named a ‘Visionary’ in Gartner’s Magic Quadrant for P&C Insurance
Claims Management Module
 Majesco Positioned as a Leader in Gartner’s First Magic Quadrant for P&C Insurance
Policy Management Modules
 Majesco Customer, AssureStart, Receives SMA Innovation in Action Award

The company has market cap of around 1308 crore and On the positive side, the company
was able to report operating profit of Rs 1.7 crore after reporting operating loss of Rs 1
crore in the previous quarter. In addition, its net profit was Rs 1.5 crore compared with the
loss of Rs 2 crore in the March quarter. The US market contributes nearly 89 per cent to its
revenues, while the UK generates 7 per cent of the revenue. The company caters to 164
clients in the property and casualty (P&C) and Life & annuity segments. P&C contributes 80
percent Of the revenue. The company expects to clock revenue of $200-225 million by
FY18 compared with $113 million in FY16. It also expects to improve operating margin
before depreciation (EBITDA margin) substantially to 12-14 per cent from just over half a
percent in FY16. Beta of the stock for one month range is 0.032.
 Company is virtually debt free which is very good for the financial health of a
company.
 Net profit of the company has increased from 1.11 crore to 9.96 crore in last quarter
 Net sales of the company has increased from 4.50 crore to 5.13 crore in the last
quarter
 Company has good ratio of promoter Stack which is around 50%
 Return on equity ratio has increased from 5.25% to 6.88%
 Return on capital employed ratio increased from -2.01% to 5.96%
 Operating profit margin increased from 1.8% to 6.19%
Fundamentals
Market cap 1308.91 cr
Face value Rs. 5
EPS Rs. 6.42
52 Week H/L Rs. 300/591
Listed at NSE/BSE
P/E Ratio 86.64
Industry P/E 19.37

Technical Analysis
Majesco Performed very well in the second half of 2017 when it bottomed out around 300 in
July, Since then it the stock almost doubled in its value. Since last two weeks the stock
recovered again from its correction mode also formed bullish engulfing pattern on weekly
chart. It gained nearly 80 points in the last two weeks and again heading to break recent
monthly high.
 The stock formed a flag like structure on weekly chart, it is not very accurate but if
break out comes with heavy volume it will work.
 The stock recovered earlier three times with the support of 14 day EMA and it works
fine on weekly chart
 590 is the monthly resistance and 470 is the strong support, price may come a little
down near 530 once.
 540 is the historical monthly support and the stock should not give weekly closing
below this level.
 21 day EMA on daily chart also supports the stock
Buy Majesco between 530 and 550 for the target of 630-650 and maintain stop loss below
470
Majesco WEEKLY CHART

Dr Lal PathlavsPvt Ltd. Late Dr. Major S.K. Lal, commenced the business of
providing pathology services and maintaining a blood bank in the year 1949 through sole
proprietorship M/s Central Clinical Laboratory and M/s Blood Bank Transfusion Centre. The
business of diagnostic and related healthcare tests and services now continues to be provided
by the Company Dr Lal PathlavsPvtLtdThe Company was incorporated as Dr. Lal PathLabs
Private Limited, a private limited company under the Companies Act, 1956, with a certificate
of incorporation granted by the RoC on February 14, 1995 at Delhi. The business of the
partnership firm Central Clinical Laboratory is now undertaken by the Company, while Central
Clinical Laboratory does not undertake any business operations. The Company was converted
into a public company pursuant to a special resolution of the shareholders of our Company at
an EGM held on August 7, 2015. Consequently, the name of the Company was changed to Dr.
Lal PathLabs Limited and a fresh certificate of incorporation pursuant to the change of name
was granted by the RoC on August 19, 2015.
 Over 3000 individuals work at the Dr Lal PathLabs in India with over 55 percent of the
staff in laboratory functions
 Qualified team of 147 Pathologists, 8 Radiologists, 13 Microbiologists , 5 Biochemists
and 11 specialists with doctorate degrees
 There is a growing pool of young leadership from top institutions like AFMC, IIMs, IITs
, XLRI, SP JAIN amongst others
 Dr Lal PathLabshonoured with Frost and Sullivan 4th Annual India Healthcare
Excellence Award, 'Diagnostic Service Provider Company of the Year 2012
 Dr Lal PathLabs recognized by IBM - amongst top 50 brands in India for Marketing & IT
 Satellite laboratories at Punjabi Bagh& NOIDA & Clinical Trials Laboratory, Gurgaon
receive NABL accreditation as per ISO 15189 (2007
 Six Laboratories of Dr Lal PathLabs namely Main Laboratory, Reference Laboratory,
Satellite laboratories at Gurgaon, SDA, PreetVihar and Mumbai successfully upgrade
the NABL Quality Standard from ISO

FUNDAMENTAL ANALYSIS
Growth is a substantial asset for the company, as anticipated by dedicated analysts.
Within the next three years, growth is estimated to reach 56% by 2020.The group's
activity appears highly profitable thanks to its outperforming net margins.Thanks to a
sound financial situation, the firm has significant leeway for investment.Predictions on
business development from analysts polled by Thomson-Reuters are tight. This results
from either a good visibility into core activities or accurate earnings releases.Analysts
have a positive opinion on this stock. Average consensus recommends overweighting
or purchasing the stock.The difference between current prices and the average target
price is rather important and implies a significant appreciation potential for the stock.
Beta of the stock for one month range is 0.089.
 Promoter's stake has increased.
 Net sales have increased from 241.80 cr to 269.30 cr in last quarter
 PBDIT have increased from 63.50 cr to 74.90 cr last quarter
 Net profit has increased from 43.10 to 50.20 cr last quarter
 Company P/E is 47.25 which is less than industry P/E of 52.47 which indicates
that company is undervalued.
Fundamentals
Face value Rs. 10
EPS Rs. 18.86
52 Week H/L Rs. 717.65/ 1278.55
Listed at NSE/BSE
P/E Ratio 47.29
Industry P/E 52.47

Technical Analysis
Dr. Lalpath Lab shows very strong positive trend in the last 4 weeks. It recovered nearly 25
percent from its bottom. The stock formed hammer pattern on monthly chart and also gave
confirmation as it formed strong bullish candle in November month. It formed low of 775 and
high of 908 finally settled at 889 on the last working day of November. From the last 8 trading
sessions the stock is in tight consolidation range and ready for break out now.
 If we draw a trend line from the highs of June 2011 then the stock has given break out
of this long term trend line on weekly chart
 If we draw a trend line from the lows of January 2017, then the stock managed to
sustain above it and it works as a strong support now.
 900 is the strong psychological as well as monthly resistance , weekly closing above
900 will confirms the uptrend.
 900 should be breached by heavy volume to generate short term momentum in the
stock
Buy Lalpath Lab above 900 for the target of 990 and 1040 with the stop loss below 815. Less
Risky trader can maintain stop loss below 855
Lalpath Lab WEEKLY CHART

The chronicle of Sobha Developers Limited (SDL) was back to a decade of years.
Mr. P N C Menon founded the company in 7th August of the year 1995. SDL is one of the
largest and only one backward integrated company in the construction arena. Doing the
business of construction, development, sale, management & operation of townships, housing
projects, commercial premises and other related activities. SDL has a number of Group
companies that support its backward integration model includes Sobha Interiors Division,
Sobha Glazing and Metal Works Division, Sobha Concrete Products, Sobha Projects & Trade
Division, Sobha Renaissance Information Technology, S & T Group - Oman, Indeset - UAE and
Gulf International Construction & Interiors Company (GICI) - Qatar. Retail Division of the
company includes SobhaRestoplus - Spring Mattress and Sobha Modular Office Furniture. SDL
is an industry leader in Bangalore, Karnataka; contractual projects have also been constructed
in Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab, Harayana and Maharashtra.
 SOBHA is renowned for its world-class products. The Company conforms to the ISO
9001, ISO 14001 and OHSAS 18001 certifications for its quality, safety and
environment management systems.
 SOBHA bags the 'Best Professionally Managed Company' (turnover > INR 1000 crores),
Achievement Award for Social Development & Impact and the 'Best Construction
Project Award’ for SOBHA Westhill at the 9th CIDC VISWAKARMA Awards.
 SOBHA has been adjudged the top brand according to Track2Realty Best Practices
Report 2017 across several categories – EXECUTION, CONSUMER CONNECT,
TRANSPARENT DEALS, CARE, COMMUNICATION and DESIRABLE PRACTICES.
 SOBHA honoured with CARE AWARDS 2017 in the category of 'Best CSR activity'.

Company has market cap of 6682 cr and Its residential projects include luxury and super
luxury apartments villas row houses presidential apartments plotted developments and
aspirational homes and contractual projects for corporate entities comprise offices
convention centers software development blocks multiplex theatres hostel facilities
hotels guest houses food courts restaurants research centers club houses and factory
buildings.Beta of the stock for one month range is 0.79.
 Promoter's stake has increased
 The company has delivered growth of 9.63% over past five years.
 Company has a good return on equity of 7.21% for last 3 years
 Company P/E is 30.81 which is less than industry P/E of 43.09 which indicates that
company is undervalued.
 Boyught buy 20 mutual fund schemes and sold buy only 2 mutual fund schemes
Fundamentals
Market cap 5682.46cr
Face value Rs. 10
EPS Rs. 19..15
52 Week H/L Rs.224/636.45
Listed at NSE/BSE
P/E Ratio 30.81
Industry P/E 43.09

Technical Analysis
Sobha Developers is one of the highest gainer stock in the month of November and gave
strong monthly closing. Earlier the stock gave strong break out on weekly chart in the 2nd
week of October above 430. Since then the stock rallied nearly 200 points in just 8 weeks. If
we look at its long term chart, it is just a beginning of a mid-term uptrend and expects to
continue uptrend in the upcoming moths.
 The stock gave consolidation break out in the last week of November with heavy
volume.
 It gave closing above its historical weekly and monthly resistance of 580
 555 was the key resistance and the stock consolidated near this level before giving a
break out and now it becomes a strong support for the stock
 21 day EMA also holds support on weekly chart s
 A short decline is expected in the upcoming trading sessions and buying at pull back is
suggested
 If it sustains above 580 and not give weekly closing below this level, then it would be
a strong reason to buy this stock
Buy on dips between 560 and 580 is recommended for the target of 650-700 with the stop
loss below 510. Also one can hold for 900 to 1000 levels for the holding period of 4 to 6
months
Sobha Weekly CHART

Vimta Labs Ltd was Incorporated in the year 1990. The Laboratory was
established in 1984 and developed a wide range of resources and testing capabilities.
The Company is engaged in Contract Research and Analytical Testing Services. The
Streams of Research and Testing are Contract Research (Clinical and Pre-
clinical),Clinical Reference Laboratory Services (Central Lab), Analytical Testing of
water,food,drugsetc.,and Environmental Monitoring and Impact Assessment.The
Company was awarded ISO 9002 Certification under ISO/IEC Guide-25 as Certified
Competent Laboratory and Quality Endorsed Company by Standards Australia Quality
Assurance Services Pty. Ltd in 1994.
Services offered by the company:
 Advanced Molecular Biology
 Food and Agriculture
 Drugs & Pharma
 Water
 Environmental Assessments
 Clinical Research
 Clinical Reference Lab Services
 Preclinical Research
 Genomics Online Ordering

Vimta Labs is Indias leading contract research and testing organization. Established
in 1984, Vimta has an envious track record of serving several market leaders across
the globe.
 Vimta supports regulatory authorities in mandatory certification of food and agri
products exported from India. Vimta assists the food industry commissions for
nutritional labelling, food safety evaluations, trace analysis and shelf life studies.
 Vimta has a team of 684 professionals comprising 446 scientists in various
disciplines such as chemistry, pharma, medicine, microbiology, molecular biology
and informatics. The team is slated to double in next three years.
 Vimta is a multi-site organization with more than 300,000 sqft world class
laboratory facilities. The technologies deployed at Vimta are current and leading
edge, duly validated.
 Vimta has over 12 years of experience in providing preclinical services to Pharma
companies world-wide accordance with the guidelines prescribed by international
agencies.

Vimta Labs Ltd is in the Healthcare sector, having a market capitalization of Rs. 290.50 crores.
It has reported a sales of Rs. 42.66 crores and a net profit of Rs. 4.33 crores for the quarter
ended September 2017. The company management includes S P Vasireddi (Chairman), V
Harriman (Director (Operation)), V V Prasad (Director (Admin)), HaritaVasireddi (Managing
Director), T S Ajai (Independent Director) among others.Net profit of Vimta Labs rose 98.62%
to Rs 4.33 crore in the quarter ended September 2017 as against Rs 2.18 crore during the
previous quarter ended September 2016. Sales rose 13.37% to Rs 42.66 crore in the quarter
ended September 2017 as against Rs 37.63 crore during the previous quarter ended
September 2016.Beta of the stock for one month range is -2.011.
 PBDIT of the company has increased from 5.96 cr to 11.88 cr in last quarter
 Net profit has increased from 1.06 cr to 4.33 cr in the last quarter
 Net sales of the company has increased from 39.04 cr to 42.66 cr in last quarter
 The company’s top management includes Dr.S P Vasireddi, Dr.Subba Rao
Pavuluri, Mr.HaritaVasireddi, Mr.RaoPurnachandraPotharlanka, Mr.T S Ajai, Mr.V
Harriman, Mr.V V Prasad, Prof.DBalasubramanianan. Company has
Gattamaneni& Co. as its auditoRsAs on 30-09-2017, the company has a total of
22,107,810 shares outstanding.
 Vimta Labs Ltd. key Products/Revenue Segments include Testing & Analysis
which contributed Rs 171.30 Crore to Sales Value (100.00 % of Total Sales)for
the year ending 31-Mar-2017.
Fundamentals
Market cap 361.46cr
Face value Rs. 2
EPS Rs. 4.83
52 Week H/L Rs.88.55/164.40
Listed at NSE/BSE
P/E Ratio 33.85
Industry P/E 32.67

Technical Analysis
Vimta labs Ltd. looks bullish on technical charts. If we look at its weekly and monthly chart it
gave strong closing and hit upper circuit on the first day of December despite of negative
market trend. It gave break out of the daily consolidation range and is now expected to give
break out of Previous Monthly highs. The stock gained more than 60 percent in the last one
year.
 The stock edges higher with the support of trend line drawn from the lows of
February 2016 on weekly and Monthly chart
 The stock formed Morubozu candle stick pattern on daily and weekly chart on
consolidation break out
 MACD indicates and confirms the consolidation break out on weekly chart
 11 day EMA clearly holds strong support on monthly chart and stock is trending
upwards with the support of EMA
 If the stock give weekly closing above its resistance of 165, a strong uptrend may
continue in the month of December
 130 is the historical monthly support and should not be breached in order to continue
uptrend
Buy Vimta Labs ltd. Above 165 or on dips between 150 and 155 for the target of 185-195 with
the stop loss below 130
Vimta Labs Monthly CHART

Pidilite Industries Limited.A consumer and specialities chemical company Pidilite
Industries Limited (Pidilite) was incorporated on 28th July 1969. Pidilite is the market leader
in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in
India. Its brand name Fevicol has become synonymous with adhesives to millions in India and
is ranked amongst the most trusted brands in India. The Companys product range includes
Adhesives and Sealants, Construction and Paint Chemicals, Automotive Chemicals, Art
Materials, Industrial Adhesives, Industrial and Textile Resins and Organic Pigments and
Preparations. A wholly-owned subsidiary in Singapore, under the banner Pidilite
International Pte Ltd was incorporated by the company in the year 2005 for its international
operations, encompassing the acquisition of overseas companies and joint ventures. Also in
the same year 2005, Pidilite had acquired Chemson Asia Pte Ltd, an existing Singapore-based
in the business of manufacturing waterproof coating and emulsion paints, thereby adding to
its existing, and rapidly-growing construction chemicals and paints range and the company
had took over Jupiter Chemicals in Dubai.
 Consumer and bazaar products — This segment covers a wide range of products for
consumer and craftsman applications that contribute nearly 81 % to the total sales.
Within this segment, adhesives and sealants contribute nearly 48 % to consolidated
revenues. The Company derives around 18 % revenues from construction products like
coating and paints, waterproofing, tile fixing, sealants etc., under the ‘Dr. Fixit’ brand.
 Specialty industrial chemicals — This segment includes products like industrial
adhesives, industrial and textile resins, and organic pigments and preparations.
Through these products, Pidilite caters to packaging, textiles, paints, printing inks,
paper and leather industries.
 The Company has 19 manufacturing plants and 14 overseas subsidiaries in USA, Brazil,
Singapore, Thailand, China, Egypt, Dubai and Bangladesh. Pidilite also established a
state-of-the-art research centre in Singapore that is now a member of Singapore
Chemical Industry Council (SCIC).

Pidilite Industries Ltd., incorporated in the year 1969, is a Large Cap company (having a
market cap of Rs 43658.11 Crore) operating in Chemicals sector.Pidilite Industries Ltd. key
Products/Revenue Segments include Consumer Family Products which contributed Rs
4366.90 Crore to Sales Value (82.41 % of Total Sales), Industrial Products which contributed
Rs 882.72 Crore to Sales Value (16.65 % of Total Sales), Others which contributed Rs 49.03
Crore to Sales Value (0.92 % of Total Sales)for the year ending 31-Mar-2017.For the quarter
ended 30-09-2017, the company has reported a Consolidated sales of Rs 1529.87 Crore, up
.06 % from last quarter Sales of Rs 1528.92 Crore and up 8.49 % from last year same quarter
Sales of Rs 1410.21 Crore Company has reported net profit after tax of Rs 251.80 Crore in
latest quarter.The company’s top management includes Mr.A B Parekh, Mr.A N Parekh, Mr.B
S Mehta, Mr.BharatPuri, Mr.M B Parekh, Mr.N K Parekh, Mr.RanjanKapur, Mr.Sabyaschi
Patnaik, Mr.Sanjeev Aga, Mr.Uday Khanna, Mr.VinodDasari, Mrs.Meera Shankar. Company
has Deloitte Haskins & Sells as its auditoRsAs on 30-09-2017, the company has a total of
512,810,330 shares outstanding. . Beta of the stock for one month range is 0.470.
 Company has good consistent profit growth of 22.29% over 5 years
 Net sales of the company has increased from 1349 crore to 1363 crore and net
profit has increased from 217 to 260 crore in last quarter
 Company P/E is 51.83 which is less than industry P/E of 53.03 which indicates
that company is undervalued.
Fundamentals
Face value Rs. 1
EPS Rs. 16.37
52 Week H/L Rs.592/867.40
Listed at NSE/BSE
P/E Ratio 51.83
Industry P/E 53.03

Technical Analysis
The stock is in bullish trend on Daily, Weekly and Monthly charts. Pidilite recovered sharply
from 750 level, it was a historical weekly low and now again heading towards fresh all-tme
highs. If we draw a trend line from the lows of June 2014 and January 2016 the stock
breached this long term trend line twice and both the times it managed to come back above
the trend line. It is a strong signal for continuation of uptrend.
 The stock formed bullish engulfing pattern on weekly chart near its historical weekly
support and also confirmed the uptrend
 The stock is trading near its all time high of 869 and if breaks this level with weekly
closing above it will give a sharp up rally.
 If we draw a trend line from the highs of April 2015 and July 2016 then it may give
resistance around 890-900 levels
 The monthly chart of the stock is very strong and this trend line resistance is likely to
be breached with heavy volume
 It extends uptrend with the support of 55 day EMA
Buying from current levels is recommended, and average if decline upto 840, for the target of
895-920, Derivative traders buy December futures between 840 and 850 with the stop loss
below 815
PidiliteWeekly CHART

Index Analysis
Technical Analysis
Nifty is Looking Bearish on daily chart and it has good support around 10095 level. Last month
Nifty touched its lifetime high of 10490.45 and corrected almost 400 points and it again
bounced back and gained up to the level of 10409.15 but could not sustain the gains and
corrected up to the level of 10096. If this important support level is breached on closing basis
then downward movement can be seen.
 Price just go below it's 50-day exponential moving average which is a negative
signal.
 If nifty closes below 10095 then it may correct and 9975 is support level
 Upward move can only be seen if closing above 10185 and then can touch high
of 10400
 Nifty has crossed its short term moving average and breakout of 13 Dma and
48 Dma is possible.
 If Nifty Breaks 10095 level then in down side 9800 is possible.
 Resistance 1- 10446 Support 1- 10050
 Resistance 2- 10666Support 2- 9874
Nifty 50 Spot Daily Chart

Bank Nifty
Last month Bank Nifty touched its life time high of 25953.50 and corrected upto the
level of 25152.Nifty consolidated on higher level on daily chart and came down leaving
gap on chart and it has gap also in lower level which is likely to be filled.
 Bank nifty future has formed Shooting Star candlestick pattern which is bearish
signal.
 On daily chart Bank nifty has gap around level of 24560 which can be filled.
 For bank nifty 25000 is a crucial level if nifty closes below this level then on
nifty can move towards down side.
 If Bank nifty trades below then 24630 will be important support and resistance
will be 25470
 If Bank Nifty trades above 25000 level than it can move towards 25670 to
25820.
 Resistance 1- 25817 Support 1- 24635
Daily Chart

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December report from CapitalHeight

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